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Volkswagen mulls expansion of ride-hailing business to Ghana

Volkswagen AG will decide in early 2020 whether to launch its new ride-hailing business, dubbed Move, in Ghana, where the company also plans to start assembling cars soon, Reuters reported, citing the company's African division head Thomas Schaefer.

"In January, there's going to be the decision on how we get the mobility company set up (in Ghana), which services would make sense. Is it the car-sharing or the ride-hailing? But the data we now have from Rwanda is super valuable," Schaefer said, addressing reporters.

The German automaker, which launched the app-driven Move service in December 2018, piloted the business model in Rwanda's capital Kigali. The automaker expects to foray into Africa's untapped new car market, Reuters said.

VW plans to begin assembling its Tiguan, Teramont and Passat models by the end of 2019 at a plant in Ghana that will initially have the capacity to produce 5,000 cars per year.

This comes after Ghana's government approved a new automotive policy in August that encourages carmakers to invest in local production.

Schaefer added that the automaker's South African facilities are on track to produce some 162,000 cars and another 100,000 engines this year, marking a record. About two-thirds of those vehicles are meant for the export market, he added.